Human Recognition and its Role in Economic Development: A Theoretical Model

This paper presents a model of human recognition, a concept defined as the acknowledgement provided to an individual that he is of inherent value with intrinsic qualities in common with the recognizer. The model describes provision and receipt of human recognition, its contribution to utility, its effects on health and labor supply, and the role it plays in development programs. The model provides a theoretical basis for understanding human recognition, lays the foundation for empirical study, and offers an example of how non-material components of development can be formally modeled. Key predictions from the model are that human recognition has a positive, causal relationship with utility, health outcomes, and labor supply; that multiple equilibria forhuman recognition can exist, and groups can be stuck in low-level equilibria; and that only accounting for the instrumental effects recognition has on material outcomes while ignoring its direct effects on utility leads to suboptimal programs.